Text: HF02296 Text: HF02298 Text: HF02200 - HF02299 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 511.8, subsection 19, unnumbered 1 2 paragraph 1, Code 1997, is amended to read as follows: 1 3 Bonds or other evidences of indebtedness, not to include 1 4 currency, issued, assumed, or guaranteed by a foreign 1 5 government other than Canada, or by a corporation incorporated 1 6 under the laws of a foreign government other than Canada.Any1 7suchSuch governmental obligations must be valid, legally 1 8 authorized and issued, and on the date of acquisition have 1 9 predominantly investment qualities and characteristics as 1 10 provided by rule.Any suchSuch corporate obligations must 1 11 meet the qualifications established in subsection 5of this1 12sectionfor bonds and other evidences of indebtedness issued, 1 13 assumed, or guaranteed by a corporation incorporated under the 1 14 laws of the United States or Canada. Foreign investments 1 15 authorized by this subsection are not eligible in excess of 1 16twoten percent of the legal reserve of the life insurance 1 17 company or association. Investments in obligations of a 1 18 foreign government other than Canada are not eligible in 1 19 excess of two percent of the legal reserve in the securities 1 20 of foreign governments of any one foreign nation. Investments 1 21 in a corporation incorporated under the laws of a foreign 1 22 government other than Canada are not eligible in excess of two 1 23 percent of the legal reserve in the securities of any one 1 24 foreign corporation. 1 25 Sec. 2. Section 515.35, subsection 4, paragraph i, Code 1 26 Supplement 1997, is amended to read as follows: 1 27 i. FOREIGN INVESTMENTS. Obligations of and investments in 1 28 foreign countries, as follows: 1 29 (1) A company may acquire and hold other investments in 1 30 foreign countries that are required to be held as a condition 1 31 of doing business in those countries, so long as such 1 32 investments are of substantially the same types as those 1 33 eligible for investment under this section. 1 34 (2) A companymayshall not investnotmore than two 1 35 percent of its admitted assetsin the obligations of foreign2 1governments, corporations, or business trusts, orin the 2 2 stocks or stock equivalents of foreign corporations or 2 3 business trusts, other than the stocks or stock equivalents of 2 4 foreign corporations or business trusts incorporated or formed 2 5 under the laws of Canada, and then only if theobligations,2 6 stocks,or stock equivalents of such foreign corporations or 2 7 business trusts are regularly traded on the New York, London, 2 8 Paris, Zurich, Hong Kong, Toronto, or Tokyo stock exchange, or 2 9 a similar exchange approved by the commissioner by rule or 2 10 order. 2 11 (3) A company may invest in the obligations of a foreign 2 12 government other than Canada or of a corporation incorporated 2 13 under the laws of a foreign government other than Canada. Any 2 14 such governmental obligation must be valid, legally authorized 2 15 and issued, and on the date of acquisition have predominantly 2 16 investment qualities and characteristics as provided by rule. 2 17 Any such corporate obligation must on the date of acquisition 2 18 have investment qualities and characteristics, and must not 2 19 have speculative elements which are predominant, as provided 2 20 by rule. A company shall not invest more than two percent of 2 21 its admitted assets in the obligations of a foreign government 2 22 other than Canada. A company shall not invest more than two 2 23 percent of its admitted assets in the obligations of a 2 24 corporation incorporated under the laws of a foreign 2 25 government other than a corporation incorporated under the 2 26 laws of Canada. 2 27 (4) A company shall not invest more than ten percent of 2 28 its admitted assets in foreign investments pursuant to this 2 29 paragraph. 2 30 EXPLANATION 2 31 This bill amends provisions relating to authorized 2 32 investments of domestic insurance companies in foreign 2 33 governments and foreign corporations. The bill amends Code 2 34 section 511.8, relating to life insurance companies and 2 35 associations, and Code section 515.35, relating to insurance 3 1 companies other than life insurance. The bill provides that 3 2 investments in foreign government obligations must, at the 3 3 time of acquisition, have predominantly investment qualities 3 4 and characteristics as provided by rule of the insurance 3 5 commissioner. The bill provides that investments in foreign 3 6 governments and foreign corporations are limited to an 3 7 investment of 2 percent of the company's assets in any one 3 8 foreign government or corporation, and limited to a total 3 9 investment of 10 percent of the company's assets in foreign 3 10 investments. The limitation is determined as a percentage of 3 11 the reserves of a life insurance company or the admitted 3 12 assets of a nonlife company. The limitation established does 3 13 not include investments in the government of Canada or 3 14 corporations incorporated under the laws of Canada. 3 15 LSB 4177HV 77 3 16 mj/jl/8
Text: HF02296 Text: HF02298 Text: HF02200 - HF02299 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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